Download as pdf or txt
Download as pdf or txt
You are on page 1of 14

IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

ADVANCED MANUFACTURING TECHNOLOGY ADOPTION IN


MANUFACTURING COMPANIES IN KENYA

George M. Nyori1, Julius M.Ogola2


1
Lecturer in Department of Mechanical and Manufacturing Engineering, University of Nairobi.
e-mail: george.makari @uonbi.ac.ke).
2
Associate professor of Engineering Management in the School of Engineering, University of Nairobi.

Abstract
Over the past few decades, manufacturing has evolved from a more labor-intensive set of mechanical processes to a sophisticated
set of information based technology processes. With the existence of various advanced manufacturing technologies (AMTs), more
and more functions or jobs are performed by these machines instead of human labour. This study was undertaken in order to
research the extent of AMTs adoption in manufacturing companies in Kenya. In order to investigate a survey was conducted via
questionnaires that were sent to 183 selected AMT manufacturing companies in Kenya. 92 companies responded positively. All
the surveyed companies were found to have a measure of investment in at least two of the 14 types of AMTs investigated. In
general the company surveyed showed that the level of AMT adoption in Kenya is very low with investments levels at a mean of
2.057 and integration levels at a mean of 1.639 in a scale of 1-5.

Keywords—AMT adoption, AMT investments, AMT integration, companies in Kenya.

--------------------------------------------------------------------***----------------------------------------------------------------------

1. INTRODUCTION are now made better, faster and cheaper and manufacturing
companies in Kenya cannot afford to do otherwise, else they
Manufacturing processesand systems used in design and will produce goods that are not globally competitive.
production are undergoing dramatic changes in response to
new customer needsand emerging technologies. Complexity,
dynamism and uncertainty have become dominant 2. ADVANCED MANUFACTURING
characteristics of recent competition patterns which have TECHNOLOGIES
resulted in a demand-diversified market with more
multifaceted products [3].AMTappears to represent a perfect Different studies have adopted wider definitions of
interaction between technological potential and the AMTs.Reference 15 defined AMTs as a group of integrated
manufacturing challenges.The major benefits of Advanced hardware and software based technologies. These
Manufacturing Technologies (AMTs) include faster technologies are often referred to as intelligent or smart
machine cycle, greater reliability, and reduced inventory, manufacturing systems and often integrate computational
saving on labor, greater flexibility and improved quality. predictability within the production process [10]. Reference
The use of AMTs permits the integration of the full [1] used the term AMT to describe a variety of technologies
spectrum of production functions and manufacturing that utilize computers to control, track, or monitor
processes with computer technologies [9]. With the use of manufacturing activities, either directly or indirectly.
computer technology, AMTs make the data storing and Reference [13] regards AMTs as a wide variety of modern
manipulation possible. Data held electronically can be computer based technologies in the manufacturing
changed and distributed easily and cheaply between these environment. From these studies, it can be summarized that,
technologies. Companies therefore adopt these technologies AMT suggests both soft and hard technologies which are
for a wide range of activities, ranging from scheduling to being employed to enhance manufacturing competencies.
quality inspection. This study adopts the narrower form of AMT as the use of
innovative technology to improve production processes and
In the global business environment, technology is one of the it is this concept that is further explored within this study.
salient elements for remaining competitive [6]. With
globalization and free trade agreements, manufacturing Computer aided design (CAD) is extensively used in the
companies in Kenya are under increasing pressure to adopt design of tools and machinery used in manufacturing
AMTs to simply survive the global competition. components. It is used throughout the engineering process
from conceptual design and layout, through detailed
Exposure to global competition reveals that manufacturing engineering and analysis of components to definition of
companies in Kenya can no longer rely on simple manufacturing methods [13]. Computer aided design
conversion of raw material into goods, but a process of consists of CAD computer, computer peripherals, operations
conversion constantly reinventing itself. Globally products software and user software. Computer-aided manufacturing
_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 356
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

(CAM) refers to the use of specialized computer programs management practice element, Just-in-Time (JIT), is
to direct and control manufacturing equipment. When CAD excluded due to the fact that it is not a technology, but
information is translated into instructions for CAM, the instead more of a practice.
result of these two technologies is called CAD/CAM[5].
Computer aided engineering (CAE) software assists the 3. MANUFACTURING COMPANIES IN KENYA
engineer while examining and testing design from a
structural or engineering point of view. When CAD is The implementation of AMTs is expected to face challenges
integrated with CAE, it assists in the design and drawing in achieving its full potential in Kenya due to the current
process for new products or modifies existing products. It companies’ capacity to assimilate technology.
includes the direct graphic-interactive generation of two- or Manufacturing industry is the backbone of industrialization
three-dimensional data models with subsequent graphic process in Kenya since it plays a crucial role in expanding
output, supporting activities such as calculations or the country’s economy. Implementation of AMTs requires
simulations [13]. manufacturing companies to adopt new ways of thinking
and doing work. Although Kenya’s manufacturing sector
The nature of manufacturing companies that deal with a enjoyed relatively rapid growth in the early post-
variety of products and the type of processes involved, independence years (1970s), it has generally been sluggish
demand the technology advancement in material without dramatic shifts in performance. However, its
requirements planning (MRP). The MRP is software performance has been shaped by some notable
developed to determine material requirements for developments. The first of these is the carry forward of IS
manufacturing companies. The extension of MRP, which is policies that were implemented during colonial rule and
referred to as Manufacturing Resource Planning (MRP II), adopted by the independent government. The IS policy
allows inventory data to be augmented by other resource served to ensure the availability of basic products in the
variables, such as labor hours, material cost (rather than domestic market [7]. However, such products were
material quantity), or capital cost. In this case, MRP II is overpriced and the policy distorted the evolution of industry
integrated with other computer files that provide data to the by encouraging excess capacity and generalized inefficiency
MRP system. An enterprise-wide resource planning tool, that undermined the ability of Kenyan products to penetrate
which is called Enterprise Resource Planning (ERP), is an to external markets. A change came when the government
information system for identifying and planning the eventually recognized the need to shift focus toward export
enterprise-wide resources needed to take, make, ship and promotion in the mid-1980s [14]. However, immediate
account for customer orders, which is the extension of MRP efforts to encourage exports were overshadowed by
and MRPII [4]. macroeconomic challenges and externally driven SAPs that
were implemented half-heartedly and opportunistically.
Automated materials handling (AMH) systems improve the Kenya is currently the most important source of FDI in
efficiency of transportation, storage, and retrieval of Uganda and Rwanda. The region, particularly Uganda, is the
materials in and from warehouses. Automated storage and most important export destination for Kenyan products. A
retrieval systems (ASRS) provide for the automatic distinctive feature of the manufacturing sector in Kenya is
placement and withdrawal of parts and products into and the coexistence of the modern sector alongside a rapidly
from designated places. The AMH can take the form of expanding informal sector [7]. While the former comprises
monorails, computerized conveyors, robots or automated mainly of small, medium and large enterprises, the informal
guided vehicles (AGVs). AGVs use embedded floor wires sector consists of semi-organized, unregulated, small-scale
to direct driverless vehicles to various locations in the plant, activities that use low level technologies and employ few
delivering materials [2]. Industrial robots are substitutes for people. A large proportion of industrial output is directed
many repetitive manual activities [2]. A robot is a towards satisfying basic needs, namely the provision of low-
reprogrammable mechanical device that may have a few income consumer goods and services [8].
electronic impulses stored on semiconductor chips that will
activate motors and switches. Robots are used to perform While data on this sector is inadequate, it is one of the
repetitive tasks such as picking and placing devices, spot fastest-growing sectors and a major source of employment
welding, and painting. Robots are also widely used to carry in Kenya. The small and medium-scale enterprises, which
out quality inspection on incoming or final products. When form part of the formal economy, are characterized by some
all the above technologies are integrated with system-wide degree of specialization. These enterprises manufacture a
production control, inventory and other systems, full wide range of items generally designed to meet the domestic
computer-integrated manufacturing (CIM) is achieved. needs of low-income households although some are
exported to neighboring countries[7]. The structure of
Given the wide range of computer-based technologies that Kenya’s manufacturing sector has undergone minimal
can be found in manufacturing companies, the holistic changes despite shifts in policies. Production is still largely
technology perspective, which covers the whole range of geared towards consumer goods. Thus, the study of AMT
AMTs, is believed to be the research wave in manufacturing adoption in manufacturing companies in Kenya is timely in
technology, which is in line with the focus of this study. order to examine their current practice in view of their
Given the wide range of AMTs, this study adopts a similar technological adaptability. Indeed it is hoped that ideas and
list as that put forward by reference [12]. However, the suggestions based on the findings from this study can be
_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 357
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

made in order to help enhance the effectiveness of absence of such evidence we preferred not to prejudge the
manufacturing companies in developing countries, like matter but instead wait to see if the data suggest
Kenya, and thus maximize their contribution to the reformulation of the suggested scale.
economy.
Gaining admission to industrial organizations for the
4. METHODOLOGY purposes of sociological research in Kenya is difficult and
the author, dependent to a large extent on the efficacy of
The study set its boundaries around AMT investment and personal contact networks for the purposes of getting
integration of manufacturing companies in Kenya. As the information. A letter of introduction accompanying the
majority of the AMT usage is by manufacturers producing questionnaire was addressed to the Production
nnnnndiscrete products, this study focused on the current Manager/Managing Director of the company. 183
industry distributions of manufacturing companies in Kenya questionnaires were either delivered or posted to all the
listed under Kenya association of manufacturers[8].Samples identified AMT companies.
were taken from eight manufacturing sub-sectors which
produce discrete products, covering the whole range of the As the AMT plants were located at different places,
industry. The eight sub-sectors include Food, beverage and geographically ranging from 5 to 700 km, data collection
animal feeds industry, Construction and material process took nearly 7 months. 101 companies showed
industry,Chemical and Pharmaceuticals industry, Plastics, positive response and data from these companies were
packaging and stationery industry, Power generation and collected for analysis. The respondents were required to fill
electrical/electronic industry, Fabricated metals industry, up their job title and the duration in holding the position in
Textiles, apparel, leather and foot ware and Automobile and the company. This information was deemed important in
parts industry. This is representative of the entire population order to find out the credibility of the informant. Out of the
of the companies in Kenya. 101 respondents whose data was collected the credibility of
9, representing about 9%, did not meet the standard required
Advanced manufacturing technology results from and so were rejected in the analysis. The analysis is
substantive advancement in the current state of production therefore based on 92 companies. A brief look at the
of materials and products. These advancements include companies showed that all our sub-sectors were represented.
improvements in manufacturing processes and systems,
which are often spurred by breakthroughs in basic science 5. RESULTS AND DISCUSSION
and engineering disciplines. The study investigated 14
AMTs in 5 domains based on their functionality. These As the focal point of our study was on AMT manufacturing
domains included Product Design and Engineering companies, data is presented in a disaggregated form by
Technologies (PDETs); Production Planning Technologies sub-sector. This allows better understanding about sub-
(PPTs); Material Handling Technologies (MHTs); Assembly sector differences in terms of the structure and composition
and Machining Technologies (AsMTs) and Integrated of the different sectors that constitute in an aggregate. The
Manufacturing Technologies (IMTs) collected data on the AMT manufacturing sub-sectors in
Kenya provide a basis for understanding why companies in
The AMT adoption was operationalized in terms of the level different sub-sectors might act differently in terms of
of investment in the technology and its level of integration. adopting different AMT technologies.
In level of investment companies were asked to indicate the Majority of the respondents (42.5%) were from top
amount of investment the company had in the individual management levels, i.e. directors, managing directors, chief
technology, on a likert scale of 1-5, where 1 indicated little executive officers or chairmen, and approximately 40%
investment, 2 indicated some investments, 3 indicated of the respondents were directly responsible for
moderate investment, 4 indicated substantial investment and manufacturing or operations or production issues of their
5 indicated heavy investment. The level of integration was companies. 17.5% of respondents were holding non-
determine by ascertaining on whether the piece of manufacturing-related positions such as administration
technology is connected to another appliance or system managers (3), company secretaries (3), marketing managers
within the department, company or the enterprise, or just (2), commercial managers (2), purchasing managers (2),
a piece of stand-alone technology. Companies were asked to human resource managers (2) and finance managers (2).
indicate the level of integration, on a likert scale of 1-5, Numerous elements of visited company profile were
where 1 indicated no integration, 2 indicated limited collected using the designed instrument. This included the
integration, 3 indicated moderate integration, 4 indicated full sub-sector of the industry; the year of establishment and the
integration and 5 indicated extended integration. company size which was assessed by capital invested and
the number of full-time equivalent employees, where one
The two dimensions were treated with equal weight. part-time equals to half a full-time employee. The mean
However with regard to dependency integration depended workforce number of companies surveyed was found to be
on investment as illustrate in the course of our earlier low, at around 50 employees, it is no surprise that the top
discussion and definition of them. With regard to weighting, management level were in-charge of their manufacturing
there is no available evidence to suggest that any one of the function and involved in decision making in manufacturing
dimensions carries more weight than the other. In the issues. At a glance, we can infer that the sampled

_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 358
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

information collected from the survey was highly credible Majority of the companies surveyed were mature companies
and with good understanding of informants, with the that have existed in the manufacturing scene for some time,
average duration in their respective positions as 9 years. with average being around 40 years. The fact that the
median company age is around 30 years shows that across
Majority of the respondents were from food, beverage and all the eight broad manufacturing sub-sectors there are some
animal feeds industry, which accounted for 31.5%, followed very old companies that are in existence in each of the sub-
by the construction and material industry at 14.1%, chemical sectors. 28 percent of respondents have been trading for
and pharmaceuticals industry at 12.0%, plastics, packaging more than 50 years, with almost half of them in the food,
and stationery industry at 12.0% and power generation and beverage and animal feeds.There was only a small fraction
electrical/electronic industry at 10.9%. Other respondents of young companies, 12%, which had existed for less than
represent a small fraction like fabricated metals industry at 10 years. Power generation, electrical/electronic industry
7.6%, textiles, apparel, leather and foot ware industry at exhibited the highest mean and median age, 60 and 40.
6.5% and automobile and parts industry at 5.4%. Fabricated metal industry was the youngest industry with
5.1 Age of Industry Stock mean age of 28. The results are shown in Fig. 1.

Fig 1 Company age by Sub-Sector

5.2. Product Design and Engineering Technologies Fig. 3 shows that across all sub-sectors investment in CAD
takes the most important position while GT is worth the
Manufacturing companies invested in various product least. Fabricated metal industry relies on CAD the most,
design and engineering technologies. These technologies followed by automobile and parts industry. Similarly, CAE
included CAD, CAE, CAMand GT. Companies used these is relatively more important in fabricated metal industry and
technologies to assist them in designing and testing a least important in chemical and pharmaceutical industry. For
product, controlling of manufacturing machinery and also CAM investments, automobile and parts industry registered
for part classifications and coding systems. Fig. 2 shows the the highest mean score, 4.25, while packaging and stationery
mean investment score of for each PDET. The results show registered the lowest, 1.25. Power generation, electrical and
that the most common PDET among the companies electronic industry registered the highest mean score in GT.
surveyed is CAD, with a mean investment score of 3.25;
followed by CAM, with mean score of 2.75. The results
show that the least investment is GT with mean scor of 1.25.

Fig 2 Investments in Product Design and Engineering


Technologies
_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 359
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

Fig 3 Investments of product design and engineering technologies by Sub-Sector

Comparison of the mean score of PDET investments with Overall, the results show that the levels of integration in
the employment band, as shown in Fig. 4, reveals that all PDETs are limited, since none of the scores is over 2.5 (half
surveyed companies invested the most in CAD followed by way). The mean score of PDET integration by Sub-Sector
CAM then CAE and GT was the least. However in small shows that the levels of integration are low, with a mean
industries investments of CAE and GT are very low. This score of less than 2.5. In terms of the individual PDET,
indicates that these two technologies are not important for almost 90 percent of the respondents invested moderately in
small industries. In general, the importance of these CAD, however the majority of them had their CAD either as
technologies increases with company size. Larger stand-alone meaning no integration, or only integrated
companies seem to depend on these technologies for their within the department.
operations. It is the same scenario for CAE. 66% of companies surveyed
had little to moderate integrations. Majority of the
companies that invested in CAE, 80% had the technology
either with limited or no integration. Few companies
surveyed invested in GT (with mean score around 2), and
only 20% of those that had invested in the technology stated
to have limited integration. The rest had not integrated the
technology.
Fig. 5 compares mean score of PDETs with Sub-Sectors.
The results shows that among the invested technologies in
these domain automobile and parts industry had the highest
mean score of 2.1875 followed by fabricated metal industry
Fig. 4 Investments of PDETs by size that had a mean score of 2.125. Construction and material
industry had the least score of 1.375.

Fig.5 Integration of Product Design and Engineering Technologies by Sub-Sector

_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 360
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

The most integrated piece of PDETs is CAM. Table I shows 5.3 Production Planning Technologies
CAM investment and integration cross tabulation. 23
companies among the 29 that indicated little investment did Manufacturing companies invested invarious PPTs, such
not integrate the technology into the system. 4 of them as MRP, MRP II andERP to assist them in planning,
indicated limited integration and the remaining 2 showed scheduling and controlling of material and resource
moderate integration. 3 companies indicated heavy requirements for the production of various products. ERP
investment and extended the integration to suppliers or/and assisted companies in covering a wider scope by integrating
customers. the operations throughout the companies and also facilitates
global integration.
The whole manufacturing industry seems to have agreement
TABLE I
on the investments in PPTs. As shown in Fig. 6, surveyed
CAM INVESTMENT AND INTEGRATION CROSS TABULATION
companies’ investments in MRP, MRP II and ERP are
CAM Integration Total generally moderate. The ranking of investments in the three
none limited moderate Fully Extended technologies, from highest to lowest were MRP, MRPII and
little 23 4 2 0 0 29 ERP. The low mean scores is indeed quite an interesting
CAM some 6 4 3 1 0 14 discovery as it shows that surveyed companies are still very
Investme moderate 3 9 4 5 0 21 much at the early version of production planning tool.
nt substantial 2 1 5 4 0 17
Heavy 1 2 3 2 3 11
Total 35 20 17 12 3 92

Fig.6 Investment in Production Planning Technologies by Sub-Sectors

Investment of PPTs among the surveyed companies, based


on their size, reveals that the larger the company the more
likely they will invest in PPTs. Therefore,as shown in Fig
7,the scale of investment grew with size of company.

Fig.8 Integration of PPTs by Company Size

By Sub-Sector, the results shows that the level of integration


ofPPTs is limited, with a mean score of 2, indicating that
integration is only within the department. Fig.9 shows that
Fig.7 Investments in PPTs with Company Size
power generation electrical and electronic industry had
The majority of companies who invested in PPTs had slightly more integration as compared to other
limited integration.As shown from Fig.8,the study reveals manufacturing industry. Chemical and pharmaceutical
that larger companies integrated their PPTs more than industry had the least integration across all PPTs.
smaller companies.

_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 361
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

Fig.9 Integration of Production Planning Technologies by Sub-Sector

In terms of the individual PPTs, MRP is the most invested TABLE III
and also the most integrated, as shown in the Table II. The MRPII INVESTMENT AND INTEGRATION CROSS TABULATION
figures show that there is a positive relationship between the MRP II Integration Total
level of MRP investment and the extent of the integration.
Out of the 27 Companies that showed little investment in none limited Fully Extended
MRP, 22 indicated no integration, 4 indicated limited little 34 2 1 0 37
integration and 1 indicated full integration. The result shows
that companies that have moderate and heavy investment in some 8 5 2 0 15
MRP, tend to integrate this piece of PPT within the MRP II
moderate 3 4 9 0 16
company or extend it to suppliers and or customers. Investment
substantial 2 2 11 1 16
TABLE II
Heavy 0 0 5 3 8
MRP INVESTMENT AND INTEGRATION CROSS TABULATION
Total 47 13 28 4 92
MRP Integration Total
none limited Fully Extended 5.4 Material Handling Technologies
little 22 4 1 0 27 Material handling technologies (MHTs) are AMTs used by
some 5 5 1 0 11 manufacturing companies to facilitate the handling of
MRP material in manufacturing operations. ASRS use computers
moderate 3 7 10 1 21
Investment to direct automatic loaders to pick and place items for
substantial 2 3 14 1 20 production processes or storage by automatic high-lift
trucks. Companies employ transport automation by using
Heavy 1 0 8 4 13
AGVs to move materials to and from value adding
Total 33 19 34 6 92 operations.

As shown in Table III, of those who invested in some levels The study shows that on average companies surveyed had
of MRP II, only 10 % invested heavily and majority of them little investments in MHTs. Generally, companies invested
(94%) had no integration or little integration. In total, more in ASRS in comparison with AGVs. Fig 10 shows that
almost half of those companies that invested in MRP II did construction and material industry ranks the highest in
not integrate it in the company but operated it as stand- MHTs investments. Fabricated metal industry had the
alone. lowest investment in ASRS with a mean score of 1.375.
AGVs investment is slightly lower than ASRS investment.
The results also show that ERP is less popular among the The leading industry, construction and material industry had
companies surveyed. The number of companies that a mean score of 2.25. The least investment in AGVs is in
invested in and integrated ERP is significantly low. fabricated metal industry with almost negligible investment,
Companies either made little to moderate investment with i.e. a mean score of 1.25.
none to limited integration.

_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 362
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

Fig 8 Investment of Material Handling Technologies by Sub-Sector

Larger companies tend to invest slightly more in MHTs as Fig 12 shows that material handling technology is either in
compared to smaller companies. The mean score of stand-alone mode or only linked within the department.
investment of MHTs for large companies is between 2.75 to When comparing the level of integration of MHTs by type
3.5 while small companies have a mean score of 1.5. Fig 11 of Sub-Sector, all industries have almost the same level of
shows mean Score of MHTs investment by company size integration. Power generation electrical and electronics
industry integrated its automated storage and retrieval
systems almost within the department (mean score of 1.75).
However, the other industries showed power integration of
their MHTs.

Larger and older companies tend to integrate their ASRSs


further than younger and small companies. The AGVs is a
stand-alone piece of technology in many companies. The
conclusion we can draw from the study is that both the
level of investments and integration of material handling
technologies in the companies surveyed are very limited.
Fig 9 Investment of Fig MHTs by Company Size

Fig 10 Integration of Material Handling Technologies by Sub-Sector

_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 363
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

5.5 Assembly and Machining Technologies Generally, industries invested the most in numerical control
machines technologies. Fig 13 shows that food, beverage
The study examined the level of investment and integration and animal feed industry, fabricated metal industry,
of 3 types of assembly and machining technologies automobile and parts industry and the chemical and
(AsMTs); computer-aided quality control system (CAQCS), pharmaceutical industry invested more moderately in
robotics and numerical control machines (NC/CNC/DNC). NC/CNC/DNC than the other industries, with a mean score
These assembly and machining technologies are used to of about 3. The investment in numerical control machines
perform repetitive functions and work without permanent for other industries is less than moderate, the least being
alteration of the equipment. Computer-aided quality control plastic, packaging and stationery with a mean score of 2.
system is used to perform quality inspection on incoming or Investments in CAQCS are limited, except for food,
final materials, robotics are used to carry out various beverage and animal feed industry and fabricated metal
operations like handling, process or assembly tasks, whilst industry. Companies invested least in robotics technology
numerical control machines exist for almost all types of with a mean score of 1.75.
machining, like turning machines, boring and milling
machine, horizontal boring machines and machining centers.

Fig 11 Investment in Assembly and Machinery Technologies by Sub-Sector

Fig 14 shows that regardless of the size of the company, companies made the most integration in NC/CNC/DNC
most investments are made in NC/CNC/DNC, followed by technologies. This result is contrary to the situation of
CAQCs, and last come robotics technology. Worth noting is investments analyzed by size where medium sized
that medium sized companies made substantial investments companies were leading. For computer-aided quality control
in NC/CNC/DNC, significantly more than companies of the system and robotics technologies, surveyed companies made
other sizes. For robotics and CAQCs, investment in these slightly less integration. Even so, overall integration for
technologies grew with company size. either type of technology increased with size. The study
reveals that integration of AsMTs increases with business
years.

Levels of integration of AsMTs are limited. Fig 15 shows


that the highest to the lowest mean scores of integrations are
numerical control machines, computer-aided quality control
system, and robotics technology. Integration of CAQCS is
on the highest level in the food, beverage and animal feed
industry. Power generation, electrical/electronic made the
most integration in robotics as compared to other industries.

Fig 12 Investment in AsMTs by company size

From the data it was also found that levels of integration of


AsMTs increased with company size, except that large sized

_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 364
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

Fig 13 Integration of Assembly and Machinery Technologies by sub-sector

Table IV shows that further investigation of CAQCS reveals Table VI reveals thatNC/CNC/DCN is the most invested
that most companies that invested in CAQCS fall into little by the respondent companies, with a total of 77 % of
investment with no integration combination. The majority of respondent companies, having some level of investments.
surveyed companies that invested in CAQCS had limited Except for companies who made no integration, the largest
investment in their CAQCS and none or limited integration. group appears in the combination of substantial investment
There were 2 companies that substantially invested and fully and limited integration (9), followed by heavy investment
integrated this technology. One company substantially and moderate integration (8). Worth noticing is that the
invested and extended CAQCS integration to supplier or number of companies who made heavy investment and
customers. One company invested heavily and made full extended integration to suppliers or customers are 4 while
integration. the number of companies who made heavy investment and
TABLE IV fully integration are 6.
CAQCS INVESTMENT AND INTEGRATION CROSS TABULATION TABLE VI:
CAQCS Integration Total NC/CNC/DNC INVESTMENT AND INTEGRATION CROSS
none limited moderate Fully Extended TABULATION
little 35 4 2 0 0 36 NC/CNC/DCN Integration Total
some 20 8 2 1 0 31 none limited moderate Fully Extended
CAQCS
moderate 3 4 3 3 1 14 little 21 1 0 0 0 22
Investment
substantial 2 2 2 2 1 9 some 5 4 0 0 0 09
CAQCS
Heavy 0 0 1 1 0 2 moderate 5 6 2 1 0 14
Investment
Total 55 18 10 7 2 92 substantial 3 9 5 4 1 22
Heavy 3 4 8 6 4 25
Table V shows the distribution of respondents in terms of Total 37 24 15 11 5 92
the level of investment in robotics and its level of
integration. It is obvious that there are a limited number of
companies investing and integrating in robotics technology. F. Integrated Manufacturing Technologies
Among companies who provided valid answers in this
As the name of the technology group suggests, technologies
section, 60% of them made little investment and no
within this group are already integrated in some forms, for
integration, with less than 25% of them making any
example, FMC or FMS consist of two or more NC/CNC
integration.
machines which are interconnected by handling devices and
a transport system. The difference between FMS and FMC
TABLE V is that FMC is capable of single path acceptance of raw
ROBOTICS INVESTMENT AND INTEGRATION CROSS materials and single path delivery of a finished product,
TABULATION whilst FMS is capable of multiple paths, and may also be
Robotic Integration Total comprised of two or more FMCs linked in series or parallel.
none limited moderate Fully Extended Another technology within this subgroup is ClM, which
little 56 2 0 0 0 58 incorporates all elements in the manufacturing process from
some 8 2 1 0 0 11 product design to distribution. It links the company beyond
Robotic departments by integrating computer systems, thus islands
moderate 5 3 0 0 0 8
Investment of computer application in the companies are integrated.
substantial 1 5 1 1 0 8
Heavy 1 2 2 1 1 6
Total 71 14 4 2 1 92
Fig 16 shows that the mean score of investments in
FMC/FMS by surveyed companies is slightly higher than

_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 365
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

ClM. FMS/FMC registered a mean score of 2.05 as For most Sub-Sectors investments in FMC/FMS are slightly
compared to CIM that registered a mean score of 1.725. It more than ClM.
is the same scenario when compared by their Sub-Sectors.

Fig 14 Investments in Integrated Manufacturing Technologies by Sub-Sector

Fig 17 shows that surveyed companies which are less than As the name suggests, one would have thought that
10 years old invested the least in both FMC/FMS and CIM. integrated manufacturing technologies would be fully or
Investments by companies in the age band of 31-40yrs are extensively integrated within the company or to include
among the highest level. For the other age bands, their supply chain. However, the level of integration, as
investments in integrated manufacturing technologies provided by the surveyed companies in Fig 18, is rather low,
decrease as history of business grow. Companies in the both at mean score of 1.75 for FMC/FMS, and 1.5 for CIM
range of 21-30 years and 41 – 50 years are among those who which means that both IMTs have limited integration. This
invested almost moderately on integrated manufacturing suggests that the technology is only limited to the
technologies. department. Automobile and parts industry registered the
highest level of integration for FMC/FMS at a mean score of
2.25 while construction and material industry and food,
beverage and animal feed industry registered the lowest at a
mean score of 1.5. The highest score for CIM was registered
by automobile and parts industry with a mean score of 2.
The rest of the sub-sectors registered low integration
ranging from a mean score of 1.75 to a mean score of 1.25

Fig 15 Investment of IMTs by age bands

Fig 16 Integration of Integrated Manufacturing Technologies by Sub-Sectors

_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 366
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

Fig 19 shows that surveyed companies in age bands 31-40


and 41-50 years made more integration in IMTs than TABLE VIII: FMC/FMS INVESTMENT AND INTEGRATION CROSS
TABULATION
companies in the rest of the other age bands. Moreover,
companies in these two age groups made more integration in FMC/FMS Integration Total
CIM than FMC/FMS which is contrary to the other age none limited moderate Fully Extended
bands. little 33 4 1 0 0 38
FMC/ some 6 5 1 0 0 12
FMS
moderate 2 8 4 2 0 16
Investm
ent substantial 1 5 5 4 1 17
Heavy 0 2 3 5 0 8
Total 42 24 14 11 1 92

5.6 Generation of AMTs Scores


For the purpose of summary and analysis, the aggregate
AMTs investment and integration of surveyed companies
generated ten AMTs investment and integration scores,
Fig 17 Integration of IMTs by age band which are product design and engineering technology
investment score (PDETinv) and integration score
(PDETint), logistics related technology investment score
Table VII shows cross tabulations of CIM investment and
(PPTinv) and integration score (PPTint), material handling
integration. A few companies made CIM integration. 46 out
technology investment score (MHTinv) and integration
of a total of 92 companies surveyed indicated that they made
CIM integration. It is observed that companies investment score (MHTint), assembly and machinery technology
little of these technology and having no integration form the investment score (AsMTinv) and integration score
largest group (40), followed by moderate investment with (AsMTint), and integrated manufacturing technology
limited integration (8). There are seven companies which investment score (IMTinv) and integration score (IMTint).
did some investment but with limited integration. 5 Below lists the formulae of each investment and integration
companies did moderate investment but integrated score for each AMT:-
moderately. One company made heavy investment and 1. 𝑃𝐷𝐸𝑇𝑖𝑛𝑣 =
1
𝐶𝐴𝐷𝑖𝑛𝑣 + 𝐶𝐴𝐸𝑖𝑛𝑣 + 𝐺𝑇𝑖𝑛𝑣 + 𝐶𝐴𝑀𝑖𝑛𝑣
extended CIM integration to suppliers or customers. 4
1
2. 𝑃𝐷𝐸𝑇𝑖𝑛𝑡 = 𝐶𝐴𝐷𝑖𝑛𝑡 + 𝐶𝐴𝐸𝑖𝑛𝑡 + 𝐺𝑇𝑖𝑛𝑣 + 𝐶𝐴𝑀𝑖𝑛𝑡
4
TABLE VII 1
3. 𝑃𝑃𝑇𝑖𝑛𝑣 = 𝑀𝑅𝑃𝑖𝑛𝑣 + 𝑀𝑅𝑃𝐼𝐼𝑖𝑛𝑣 + 𝐸𝑅𝑃𝑖𝑛𝑣
3
CIM INVESTMENT AND INTEGRATION CROSS TABULATION
1
CIM Integration Total 4. 𝑃𝑃𝑇𝑖𝑛𝑡 = 𝑀𝑅𝑃𝑖𝑛𝑡 + 𝑀𝑅𝑃𝐼𝐼𝑖𝑛𝑡 + 𝐸𝑅𝑃𝑖𝑛𝑡
3
1
none limited moderate Fully Extended 5. 𝑀𝐻𝑇𝑖𝑛𝑣 = 𝐴𝑆𝑅𝑆𝑖𝑛𝑣 + 𝐴𝐺𝑉𝑖𝑛𝑣
2
little 40 2 2 1 1 46 1
6. 𝑀𝐻𝑇𝑖𝑛𝑡 = 𝐴𝑆𝑅𝑆𝑖𝑛𝑡 + 𝐴𝐺𝑉𝑖𝑛𝑡
2
some 4 7 1 1 0 13 1
CIM 7. 𝐴𝑠𝑀𝑇𝑖𝑛𝑣 = 𝐶𝐴𝑄𝐶𝑖𝑛𝑣 + 𝑅𝑂𝐵𝑂𝑇𝐼𝐶𝑆𝑖𝑛𝑣 + 𝑁𝐶/𝐶𝑁𝐶/
3
Investme moderate 2 8 5 2 1 18 𝐷𝐶𝑁𝑖𝑛𝑣
nt 1
substantial 0 4 3 2 2 11 8. 𝐴𝑠𝑀𝑇𝑖𝑛𝑡 = 𝐶𝐴𝑄𝐶𝑖𝑛𝑡 + 𝑅𝑂𝐵𝑂𝑇𝐼𝐶𝑆𝑖𝑛𝑡 + 𝑁𝐶/𝐶𝑁𝐶/
3
Heavy 0 0 2 1 1 4 𝐷𝐶𝑁𝑖𝑛𝑡
1
Total 46 21 13 7 5 92 9. 𝐼𝑀𝑇𝑖𝑛𝑣 = 𝐹𝑀𝐶/𝐹𝑀𝑆𝑖𝑛𝑣 + 𝐶𝐼𝑀𝑖𝑛𝑣
2
1
10. 𝐼𝑀𝑇𝑖𝑛𝑡 = 𝐹𝑀𝐶/𝐹𝑀𝑆𝑖𝑛𝑡 + 𝐶𝐼𝑀𝑖𝑛𝑡
Table VIII shows cross tabulation of FMC/FMS investment 2

and integration. One company made substantial investment Table IX shows the summary of AMT score per sub-sector
and extended integration to supplier/customers. Five based on the five sub-groupings. From the Table, it shows
companies made heavy investment and fully integrated that most investments are made in AsMTs, which are just
FMC/FMS. around the moderate level (mean score 2.43). PDETs ranked
second with a mean score of 2.32, followed by PPTs (mean
score of 1.869). Investment in MHTs was the lowest, at the
mean score of 1.786. For most sub-sectors, the ranking of
the scale of investment in different AMTs varied from sub-
sector to sub-sector.

_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 367
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

TABLE IX
AMTS SCORE PER SUB-SECTOR
PDET inv PDETint PPTinv PPTint MHT inv MHT int AsMT inv AsMT int IMT inv IMT int AMT score
Construction and
1.56 1.38 2.13 2.03 2.50 1.23 2.58 1.50 1.63 1.38 1.79
material Industry
Food/beverage
/animal/feeds 2.81 2.19 1.87 1.75 1.60 1.20 2.42 1.58 2.13 2.13 1.97
Industry
Textiles/apparel/
leather/foot ware 2.25 1.88 2.08 1.75 1.80 1.05 1.83 1.83 1.88 1.75 1.81
Industry
Chemical/
Pharmaceuticals 1.81 1.63 1.53 1.25 2.10 1.38 2.67 2.08 1.88 1.75 1.81
Industry
Automobile/ parts
2.31 1.69 1.60 1.43 1.60 1.30 3.00 2.17 2.13 1.38 1.86
industry
Fabricated metals
3.25 2.13 1.40 1.50 1.31 1.35 2.75 1.75 1.50 1.63 1.86
industry
Power /electrical
2.94 1.50 2.40 2.08 1.75 1.58 2.42 2.17 2.05 1.38 2.03
/electronics Industry
Plastics/packaging/
1.63 1.44 1.93 1.83 1.63 1.20 1.75 1.75 1.90 1.63 1.67
stationery industry
Average 2.32 1.73 1.87 1.70 1.79 1.28 2.42 1.85 1.88 1.63

Level of integration of AMTs invested is low. However it is size, had the highest level of investment and integration in
worth noting that the ranking of mean score is very similar PPTs while plastics, packaging and stationery, the smallest
to the order of AMTs investments. Although integration of sub-sector in size, had the lowest level of investment and
AsMTs was the highest, its mean score is as low as 1.854, integration in AsMTs. Fabricated metal industry had the
which indicates that it is only limitedly integrated. Similarly, highest investment in PDETs but food, beverage and animal
MHTs were the least invested by the respondents registering feeds had the highest integration in the same AMT. Again
a mean score of 1.284. It is noted that the ranking of mean construction and material industry had the highest
score in integration is very similar to the order of AMTs investment in MHT but Power generation, electrical and
investments except for construction and material industry electronics led in integrating the same AMT. Automobile
which registered the lowest integration at a mean score of parts industry had the highest level of investment and
1.504. However the mean AMT index follows the same path integration of AsMTs.
with AMT investment. The majority of the companies being surveyed have been
established for 30 to 50 years, which shows that these
The score for AMT for each sub-sector or individual companies are mature in their life cycle. Being in their
company was calculated as follows; mature life cycle, these companies are unlikely to change
their investment patterns drastically. Implementation of
1 AMT in these manufacturing companies has been in stages
𝐴𝑀𝑇𝑖𝑛𝑑𝑒𝑥 = 𝐴𝑀𝑇𝑖𝑛𝑣 + 𝐴𝑀𝑇𝑖𝑛𝑡 from stand- alone to slowly moving to integrated systems.
2
This can be proven with their inclination to have the lowest
intention of introducing new product lines and new product
The ranking of the scale of investment in AMTs shows that
models among other counterparts. Interestingly, companies
power generation, electrical and electronic scored the
younger than 10 years have the strongest motivation to
highest, 2.311 followed by food, beverage and animal feed
provide customized products. 28% of surveyed companies
industry at 2.164. Plastic, packaging and stationery scored
have been trading for more than 50 years, with almost half
the lowest at 1.668
of them in the food, beverage and animal feeds. Compared
with others these companies invest and integrate the least in
1 CONCLUSIONS PPTs, MHTs, AsMTs and IMTs.
In general, the sample of the companies surveyed showed The study shows that smaller plants use an average of 3
that the level of AMT adoption in Kenya is very low with different AMTs while larger plants use an average of 6
investments levels at a mean of 2.057 and integration levels different AMTs. Given this evidence, we argue that the
at a mean of 1.639 in a scale of 1-5. The study shows that no superior performance of larger plants is partly due to the
particular sub-sector can claim to be dominant in all the increased use of AMTs by such plants. We also argue that,
AMTs. The largest sub-sector in numbers among the while size has indirect effect on AMT adoption [11] it also
surveyed companies, food, beverage and animal feed enhances the AMT adoption.
industry have the highest level of investment and integration
in IMTs but the lowest level of integration in MHTs. Power Investments of PPTs are still at an early stage of the material
generation, electrical/electronics, the largest sub-sector in requirements planning tool, because they invest in MRP the
_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 368
IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308

most and ERP the least. However, it is noted that the [5] Hunt, V. D. (1987). Dictionary of advanced
younger a company is the less it invests in MRP. The survey manufacturing technology. London: Elsevier.
also shows that investment in PPT largely depends on the [6] Jabar, J., Soosay, C., Santa, R. (2010). Organizational
size of a company. According to the study, the level of learning as an antecedent of technology transfer and
integration in PPT increases with the age of the technology. new product development: A study of manufacturing
Since MRP is the earliest version of PPT and has been firms in Malaysia. Journal of Manufacturing
applied for the longest time, the level of integration of MRP Technology Management, 22(1), 25-45.
is the highest in the surveyed companies. Similarly, as the [7] Kenya (2007). Kenya Vision 2030: A Globally
latest version of PPT, ERP is integrated the least. Compared Competitive and Prosperous Kenya. Nairobi.
with companies from other industries, Power generation, Government of Kenya, Ministry of Planning and
electrical/electronic companies tend to invest more in PPT. National Development, the National Economic and
Also, we find that companies older than 50 years tend to Social Council and the Office of the President.
invest and integrate less PPT than younger companies. [8] Kenya Association of Manufacturers (KAM),
Material handling technology is the least invested and Manufacturing in Kenya, April, 2014, a quarterly
integrated technology in this study. This technology is used magazine that seeks to inform while at the same time
by manufacturing companies to facilitate the handling of entertaining readers.
material in manufacturing operations. From any point of [9] Kotha, M.S. and Swamidass, P.M. (2000). Strategy,
view, MHT gets the least attention. Companies barely invest advanced manufacturing technology and performance:
and integrate MHT in their companies no matter which empirical evidence from US manufacturing firms.
industry they belong to and how old their businesses are. Journal of Operations Management, 18,257-277.
However, the investment and integration of MHT is noticed [10] Liker, lK., Fleischer, M. and Arnsdorf, D. (1992).
to be highly related with company size. It is perhaps that Fulfilling the promise of CAD. Sloan Management
companies are using MHT to deal with their vast material Review, 33(3), 74-86.
handling to support their mass production facilities. [11] Pong, E. C.M, Burcher, P. (2009). The fit between
Assembly and machining technologies are most widely advanced manufacturing technology and manufacturing
applied for frequently repetitive functions. NC/CNC/DNC strategy; Implication for manufacturing performance.
is the most widely applied AsMT. In particular, it is most PhD thesis published, Aston University, London,
applied in medium size companies. Moreover, investment in United Kingdom.
robotics and NC/CNC/DNC technologies increase with age [12] Small, M.H., and Chen, 1.1.. (1997), Organizational
bands. Automobile and parts industry have higher development and time based flexibility: an empirical
investment and integration of AsMT with levels increasing analysis of AMT adoptions. International Journal of
with company size. Integrated manufacturing technologies Production Research. 35(11),3005-3021
do not differ much across the Sub-Sectors. However, large [13] Sun, X.L., Y.Z. Tian and G.G. Cui, 2007. The empirical
companies tend to have higher investment in IMT due to study on the impact of advanced manufacturing
their strong financial strength. In addition, except for the technology on organizational structure and human
oldest and youngest age bands, investment of FMC/FMS resources management. Proceedings of the 14th
and CIM, decrease as their age band grows. The older a International Conference on Management Science and
company is, the less it invests in IMT. Integration of IMT is Engineering, Aug. 20-22, IEEE Xplore, London, 1548-
at low level for both FMC/FMS and CIM and it does not 1553.
differ much for each sub-sector. IMT is second least [14] World Bank (2007), Kenya: Unleashing the Potential
invested and integrated among the five major AMT types. for Trade and Growth, Washington DC: World Bank.
[15] Youssef, M.A., 1992. Getting to know advanced
REFERENCES manufacturing technologies. Industrial Engineering,
24: 40-42.
[1] Boyer, K.K, G. Keong Leong, P.T. Ward, and L.J.
Krajewski (1997). Unlocking the Potential of advanced
Manufacturing Technologies. Journal of Operations
Management 15. pp. 331-347.
[2] Chase, R.B., and Aquilano, N.J. (1995). Production and
Operations Management. 7th Ed New York: McGraw-
Hill.
[3] Efstathiades, A., S.A. Tassou, G. Oxinos and A.
Antoniou, (2000). Advanced manufacturing technology
transfer and implementation in developing countries:
The case of the Cypriot manufacturing industry.
Technovation, 20: 93-102.
[4] Heizer, J., and Render, B .. (2004). Principles of
Operation Management (7th Ed.). Upper Saddle, New
Jersey: Prentice-Hall.

_______________________________________________________________________________________
Volume: 04 Issue: 10 | Oct-2015, Available @ http://www.ijret.org 369

You might also like